Other parts of this series:
So far in this series, we’ve discussed Living Business as a way for banks to be hyper-relevant and maximize growth and the three components through which the model delivers relevance and subsequent growth. Now, we turn to execution.
Based on our research and experience, we identified eight key enablers that a bank must activate to establish and execute on the Banking as a Living Business mechanisms. Each of the enablers provides banks a way to stimulate growth and increase return on equity. Fundamental to six of the eight enablers is access to flexible and scalable data and state-of-the-art technology platforms that allow banks to respond to new customer needs and adapt quickly.
One of the enablers, for example, is having a trusted brand, powered by physical, social and financial education agendas. The branch with its human contact is a prime tool within this enabler, serving as an important channel for showcasing the brand and building trusted interactions. As consumers become more digitally enabled, time pressured and product savvy, they will want to visit their bank’s branch, beyond transactional activities, for the right reasons. The branch will be a valuable place for them to validate their own research face-to-face, gather for community purposes, attend classes on financial topics and take advantage of any other opportunities to grow. It means the branch becomes a broader part of customers’ lives where community engagement, relevant advice and no-sales-pressure education programs happen around typical branch transactions—and a refreshed asset for the bank in increasing contact and creating sales conversion opportunities.
Another enabler is AI-powered next-generation customer care. Here, banks apply interactive tools—bots, chatbots, robots—built with machine learning to service and support meaningful and frictionless interactions in real-time. These include a wide range of interventions, from intelligent transaction routing and handling and biometrics for tighter, more efficient security to codification of “service” distilled into contact handling, cloud-based agent tool sets, and an IP-based backbone to integrate media. Our experience shows that radical automation and better alignment of customer needs can reduce the cost-to-serve by 30 percent while allowing for more relevant interactions.
By becoming a Living Business, incumbents have a real chance to reboot their revenue growth with wider margins and set the foundation to sustain it. The choice to pivot is at hand and those that do can outpace the rest.
For more information:
- Read more insights on growing retail banking and learn more about the eight key enablers we identified.
- Read How Banks Grow Now in the European Business Review, where I discuss how banks are integrating new techniques to address customer needs to better manage those key relationships – and how this will help banks to grow in a fast-moving business environment.